|Budget Amount *help
¥1,000,000 (Direct Cost : ¥1,000,000)
Fiscal Year 1995 : ¥200,000 (Direct Cost : ¥200,000)
Fiscal Year 1994 : ¥800,000 (Direct Cost : ¥800,000)
Generally speaking in finacial statement audit, though fairly presented opinion is the first porpuse, the detection of fraud is the second porpuse. In the step of the creation, the development, and the better development of legal audit, fraud questions change from the detection of employee's fraud to the detection of management fraud, and fairly presented opinion changes from the negative assurance of not existence of important fraud in finacial statement to the positive assuranse of credibility of finacial statement.
Fraud had meant employee's fraud, but SAS in 1988 classified employees fraud and management fraud. Errors are unconscious mistakes, irreguralities are intentional mistakes, and illegal act are direct or indirect mistakes to accounting. As errors, irreguralities, illegal acts have effects on finacial statement, the auditor checks important falsefood records in audit.
In auditing practices, auditor and client are not free from audit institution. The auditor must obey SAS in AICPA,Japanese audit standard, committee reports in JICPA.In the formal documents of audit institution, fraud changes from employee's fraud to management fraud. In legal audit, it is said that the detection of fraud was the main purpose.
In the fraud suit cases, management fraud brought about bankruptcy. From some lessons, audit standard and audit procedures had been revised. In legal audit, the maintenance and the improvement of internal control organization detect and prevent employee's fraud. It was very important problems how the auditor should solve management fraud beyond the limitof internal control organization. At present the auditor must detect and prevent managementfraud.